Walworth County finance staff told the county Finance Committee that state aid for the Children with Disabilities Education Board (CDEB) fell by about $470,000 this year because the multi-county aid formula did not change and the county’s “aidable” spending declined relative to partner counties.
The disclosure matters because the aid line has not grown in a decade and the county said reduced spending this year lowered next year’s aid; finance staff said the committee approved using $150,000 of expected investment income to plug part of the gap.
Finance staff said the aid allocation is a fixed pot divided among three counties and that local increases in property values and differences in reported expenses change each county’s share. The committee heard that spending at the county’s CDEB fell while the other two counties’ expenses rose, producing the shortfall.
Committee members were told that the county prefers to avoid repeatedly returning unspent dollars at year end because lower spending can reduce future aid; staff said they would try to maintain normal service levels, hire for a few vacancies and monitor the situation monthly.
Finance staff identified options if the shortfall remains at year end: use prior-year fund balance (the packet showed $438,000 returned at the end of 2024), identify mid-year savings to cover the remainder, or bring further proposals back to the committee. The committee approved the consent-item budget adjustments that moved $150,000 of investment income to reduce the state‑aid deficit.
Committee members pressed staff on recruiting for two vacant positions (the cost of filling both was cited as about $125,000) and on capital project underruns that could offset the revenue gap. Finance staff said they have been working with the CDEB on a tuition‑base strategy and capacity changes (from 70% to 80%) intended to improve future revenues by allowing more tuition‑paying students from partner districts.
The county did not adopt a further appropriation at the meeting; staff said they will monitor revenues monthly and return with options if the remaining shortfall persists.